Attorneys' fees
Attorneys' fees are the court-approved payment to the lawyers who brought a class action, taken from the settlement or paid separately by the company.
Also called: attorney fees, class counsel fees, fee award
Attorneys' fees are the court-approved payment to the lawyers who brought a class action, taken from the settlement or paid separately by the company.
What it means
Attorneys' fees, in a class action, are the money the court awards to the lawyers who represented the class. Class members do not pay them directly. The fee is paid from the settlement fund or, in some deals, separately by the company, and a judge must approve it as reasonable under Rule 23(h).
Courts use two main methods. The percentage method sets the fee as a share of the fund. A federal judicial handbook says awards under this method are often between 25% and 30% of the fund, with lower percentages for very large settlements. The lodestar method multiplies the lawyers' reasonable hours by reasonable hourly rates and is often used as a cross-check.
Special rules apply to coupon settlements. Federal law ties the fee for the coupon part of a deal to the value of the coupons actually redeemed. Judges also look at when the fee is paid and may hold back part of it until they see how much is actually distributed.
What it means for you
Fees often come out of the same money that pays class members, or are paid on top of it, so they affect what is left for you. You are entitled to notice of the fee request, and the settlement notice usually states the amount the lawyers plan to ask for. Compare it with the total fund, and look for a link to the full fee motion on the settlement website.
If the fee looks out of line, you can object before the deadline. The judge decides the final amount and may award less than the lawyers ask. This is general information, not legal advice.
Example
Say a settlement creates a $12 million fund and class counsel asks for a fee of 25 percent, or $3 million. The notice states the request, and the lawyers file a motion with their hours and costs so the judge can check it. At the final hearing, one class member objects that the request is too high. The judge approves $2.7 million. The extra $300,000 stays in the fund for class members.
FAQ
No. The court approves the fee, and it is paid from the settlement fund or separately by the company. You do not send the lawyers money, and you can read the fee request before you decide whether to object.
It depends on the case. A federal judicial handbook says percentage awards are often between 25% and 30% of the fund, with lower percentages for very large funds, and judges can go above or below that.
Related terms
- Federal Rule of Civil Procedure 23, class actions (Cornell LII)
- 28 U.S.C. § 1712, coupon settlements (Cornell LII)
- Manual for Complex Litigation, Fourth, sections 14.121, 14.122 and 21.71 (Federal Judicial Center)
- Managing Class Action Litigation: A Pocket Guide for Judges, 3d ed. (Federal Judicial Center, 2010)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.